This paper will detail a little of Amazon’s history and a SWOT analysisplan for the company. Amazon was foundedand launched by Jeff Bezos in 1995 as a web-based store that sold only books(Hartmans, 2017). Bezos started Amazonin the garage of his house where he lived with his wife (Hartmans, 2017).
Within the first month of operation, Amazonsold books in all of the 50 states and in 45 countries (Hartmans, 2017). Jeff Bezos and long with hiswife and their employee would have meetings at their local Barnes and Noble andin 1996 where got to meet the owners of the book store (Hartsman, 2017). Jeff was invited to a dinner meeting and wastold by execs they admired his accomplishment but would be launching their ownwebsite soon. He was told by the Barnesand Nobles execs that their website would crush his Amazon website (Hartsman,2017). Amazon faced many hardships andalmost went bankrupt until finding a loophole in buying books for fill suppliesfor customer purchases. The companywould have needed to buy more copies of a book than they needed so theydeveloped the strategy of buying the one book they needed and placing an orderfor books that were out of stock so they would not be charged. In 1998 Amazon expanded to sellmore than just books (Hansell, 1998).
Theytried to stay competitive but the launching of eBay would make it difficult. The first attempt at launching Amazon’sauction site failed. They eventually gotup and running and continued to increase their gains with the acquisition ofinternet movie database. Later in 1998Amazon tried to expand in China but was hindered by the launch of Jack Ma’s companyAlibaba.
Alibaba dominated the onlineChinese retail market. Bezos stayed thecourse and continued to strategize and quickly became a Fortune 500 e-commercecompany diversifying online shopping by including sales of DVDs, online moviestreaming, home goods, and clothing to their sales (Schneider, 2017). A SWOT analysis would be extremelybeneficial for Amazon because of the market in which the company operates. There are many online sites that offersimilar products with similar benefits as Amazon. The SWOT would build a focus on strengths andweaknesses, opportunities, and threats for and to the company. First, let’s looks at somestrengths of Amazon.
Amazon is a globale-commerce business. They have developedand implemented databases that target online shoppers based on their shoppingpatterns and previous purchases. Building alliances and acquiring other companies allows Amazon to remainrelevant and continue to offer great customer services to its shoppers aroundthe world. A weakness to look into isconsumer products and product marketing. Amazon could do more to advertise for itself. Companies like Wal-Mart send out sale flyersto residents through the mail. Amazonmarkets itself primarily through online shop searches and portal advertising.
While this style of marketing may have workedduring sit down and screen search for products, they may slow down now that weare in the age of speech search. Some opportunities that Amazonhas would be to open retail stores. Amazon’s one-click buy option has already become a success with itscustomers but not charging any delivery fees for Amazon Prime customers mightincrease buying. Members pay for thePrime service for a faster delivery time and now are being charged for 1-2 daydelivery. There are no delivery chargesfor any days over 2 for delivery. Removing the delivery fees for Amazon Prime customers may entice moreAmazon shoppers to purchase Amazon Prime Membership.
Threats that may affect Amazonare their competitors that offer consumers the same products and buyingoption. eBay offers its customers theshopping option of bidding and buy now. Wal-Mart now offers its customers a shop online and pick up at storeoption. Wish app offers products thatonly require a shopper to pay shipping as well as the buy with option.
If someone is purchasing an item and you asshopper buy that same item you can select to “buy with” and pay a discountedprice for the merchandise. Upon competition and review ofthis SWOT, Amazon will remain innovative and successful. Employee innovation appreciation will be abig asset to the company knowing that a company is as strong as itsemployees. Bezos’ Amazon will continueto thrive and be a global competitor in e-commerce.
ReferencesHansell,S. (1998). Amazon.com is ExpandingBeyond Books. Retrieved from http://www.
nytimes.com/1998/08/05/business/amazoncom-is-expanding-beyond-books.htmlHartmans,A. (2017). 15 fascinating facts youprobably didn’t know about Amazon. Retrieved from http://www.businessinsider.com/jeff-bezos-amazon-history-facts-2017-4/#amazon-wasnt-the-companys-original-name-1Schneider,L.
(2017). Overview of Amazon.com’sHistory and Workplace Culture. Retrievedfrom https://www.thebalance.com/amazon-com-company-research-2071316